New Jersey-2016-S2684-Introduced

An Act concerning the employment grant component of the Invest in New Jersey Business Grant Program and amending P.L.2008, c.112.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.2008, c.112 (C.34:1B-238) is amended to read as follows:

2. As used in [this act] P.L.2008, c.112 (C.34:1B-237 et seq.):

"Annual base salary" means the regular base or contractual salary of an employee of the business that is qualified as an eligible position. It shall exclude bonus, overtime or other forms of extra compensation such as: (1) longevity lump sum payments; (2) lump sum terminal sick leave or vacation pay; (3) the value of maintenance; (4) individual pay adjustments made within or at the conclusion of the employee's final year of service; (5) retroactive salary adjustments or other pay adjustments made in the employee's final year of service unless such adjustment was made as a result of a general pay adjustment for all personnel of the business; (6) any unscheduled individual adjustment made in the final year to place the employee at the maximum salary level within the employee's salary range; and (7) any pay for services rendered during the summer vacation period by an employee who is required to work only 10 months of the year.

"Authority" means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).

"Business" means any entity including, but not limited to a corporation, an S corporation, limited liability corporation, partnership, limited liability partnership, and sole proprietorship, and shall include all entities related by common ownership or control.

"Capital investment" means expenses of at least $5,000 incurred for the direct use and operation of a business for: (1) the site preparation and construction, renovation, improvement, equipping of, or obtaining and installing fixtures and machinery, apparatus or equipment in, a newly constructed, renovated or improved building, structure, facility, or improvement to real property; and (2) obtaining and installing fixtures and machinery, apparatus or equipment in a building, structure, or facility. Provided however, that "capital investment" shall not include soft costs such as financing and design, furniture or decorative items such as artwork or plants, or office equipment if the office equipment is property with a recovery period of less than five years. The recovery period of any property, for purposes of this section, shall be determined as of the date such property is first placed in service or use in this State by the business, determined in accordance with section 168 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.168). "Capital investment" shall also include remediation of a business facility site, but only to the extent the remediation has not received financial assistance from another federal, State or local government funding source.

"Chief Executive Officer" means the Chief Executive Officer of the New Jersey Economic Development Authority.

"Eligible position" means a full-time position filled by an individual whose wages are subject to withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. An eligible position shall include only a position for which a business provides employee health benefits under a group health plan as defined under section 14 of P.L.1997, c.146 (C.17B:27-54), a health benefits plan as defined under section 1 of P.L.1992, c.162 (C.17B:27A-17), or a policy or contract of health insurance covering more than one person issued pursuant to Article 2 of chapter 27 of Title 17B of the New Jersey Statutes. An eligible position shall not include an independent contractor or a consultant.

(cf: P.L.2008, c.112, s.2)

2. Section 4 of P.L.2008, c.112 (C.34:1B-240) is amended to read as follows:

4. a. There is also established under the Invest in New Jersey Business Grant Program to be administered by the New Jersey Economic Development Authority, an employment grant component to provide an incentive to businesses, during the current national economic crisis, to create full-time jobs that are retained for at least one year by the award of a grant [of $3,000] to qualified businesses for each eligible position created.

b. The Chief Executive Officer shall approve the issuance of a grant to a business that:

(1) has operated continuously in this State for at least two years prior to filing an application for a grant;

(2) employs at least [5] five full-time employees;

(3) adds an eligible position created in New Jersey after [December 1, 2008] August 31, 2010 and before [January 1, 2011] September 1, 2013, for a period of at least 12 consecutive months in this State; and

(4) the applicant has experienced a net increase in employment of eligible positions in this State during the same 12 consecutive months.

c. A business seeking to participate in the grant program shall submit an application in such form as required by the Chief Executive Officer. Such application shall include such information as the Chief Executive Officer shall determine is necessary to administer the grant program. All applications shall be submitted prior to [January 1, 2011] September 1, 2013.

d. The Chief Executive Officer shall review and may approve an application for the grant program. The Chief Executive Officer shall issue payment of the grant upon the submission of proof by an approved applicant of the employment of an individual in the eligible position during a period of at least 12 consecutive months in this State and proof of the other requirements set forth in subsection b. of this section. Such submission shall be subject to review and audit by the Department of Labor and Workforce Development.

e. The value of the grant shall be [$3,000] equal to five percent of the annual base salary for each eligible position created by that business, provided that no grantee shall receive more than $500,000 in grants pursuant to this section. Provided further, that the sum of grants awarded pursuant to this section shall not exceed $50,000,000.

f. For the purpose of determining eligibility for a grant pursuant to this section, the authority shall not include any position that is included in the calculation of a business employment incentive grant pursuant to the provisions of P.L.1996, c.26 (C.34:1B-124 et al.), a business retention and relocation assistance grant pursuant to P.L.1996, c.25 (C.34:1B-112 et seq.) or an urban transit hub tax credit pursuant to P.L.2007, c.346 (C.34:1B-207 et seq.).

(cf: P.L.2008, c.112, s.4)

3. There is appropriated from the General Fund to the New Jersey Economic Development Authority such monies as shall be necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), and including, but not limited to, any such monies previously appropriated to the authority pursuant to section 7 of P.L.2008, c.112 and section 1 of P.L.2009, c.74.

4. This act shall take effect immediately.

STATEMENT

This bill modifies the employment grant component of the Invest in New Jersey Business Grant Program (program) administered by the New Jersey Economic Development Authority (authority) to provide that the amount of each grant be equal to five percent of the "annual base salary," as that term is defined in the bill, of each eligible position created by a qualified business under the program. Additionally, the bill changes the beginning and ending dates for businesses to be eligible under the program to a period starting after August 31, 2010 and ending before September 1, 2013. Further, the bill requires that funding for the program shall be derived from revenues appropriated from the General Fund and any such monies previously appropriated to the authority for the program pursuant to section 7 of P.L.2008, c.112 and section 1 of P.L.2009, c.74.

Under current law, (1) the grant amount to a business is established at $3,000 for each eligible full-time position created by that business, (2) the eligibility period started after December 1, 2008 and ends before January 1, 2011, and (3) a total of $120 million was appropriated by the Legislature for job creation grants or capital investment grants, or both. However, only $70,000 was disbursed before the program was suspended by Governor Christie in April 2010. Therefore, the eligibility period in the bill is changed to reflect a resumption of the program and appropriations from the General Fund in the future.